Mr Osborne announced a series of measures he said would support business, including cutting the main rate of corporation tax by one per cent in April 2014 to 21 per cent.

Chancellor George Osborne's Autumn Statement did not do enough to close the north-south divide, according to regional business leaders.

Mr Osborne announced a series of measures he said would support business, including cutting the main rate of corporation tax by one per cent in April 2014 to 21 per cent. The Small Business Rate relief scheme will be extended by a further year to April 2014, while other measures include consulting on reducing "unnecessary burdens" from regulations covering the transfer of workers to other employers.

Mr Osborne also announced £120m will be made available to help manufacturers invest in areas including equipment, research and skills and pledged a further £350m to the next round of its Regional Growth Fund, which aims to back projects with the potential to create jobs.

He also confirmed that from April 2015, the government would pool cash currently set aside for local transport, housing, skills and getting people back to work into a single pot that Local Enterprise Partnerships in regions, including Greater Manchester, can bid for to improve infrastructure.

The Chancellor added an extra £5bn would be spent on infrastructure projects, including funding for a high speed broadband initiative in Salford.

However, there was today criticism that too many of the schemes being backed are in the south of England and that the amount being pledged does not go far enough to offset the government's wider austerity measures.

That led to renewed calls for more decision-making powers over spending to be devolved to Greater Manchester.

Baron Frankal, director of economic strategy at Manchester think tank New Economy, said: "The evidence is strong that the cuts that come with austerity bite far deeper in the north than elsewhere."

He added: "We’re encouraged by the increase in funding for UKTI and the additional support for the UK’s LEP’s.

"Whilst this might not necessarily be a game changer in the long-term for Greater Manchester, they are a welcome boost none-the-less.

"Having pressed for it repeatedly in Greater Manchester and from governments of all colours, nowhere outside of London is more ready to devolve powers from the overblown centre to the underwhelmed local."

Prof Brian Sloan, the Greater Manchester Chamber of Commerce's chief economist, said: "I was disappointed not to see more major infrastructure investment here in Greater Manchester.

"We needed infrastructure spending 18 months ago and we didn't get it and now it is only trickling out.

"There are still a number of positive announcements for businesses here but if I was to sum it up, he should really have done more."

Juergen Maier, managing director of Siemens Industry UK and Ireland and chair of the North West Business Leadership Team, said: "In summary, when you add up the real growth measures versus cuts, it looks to us like the balance remains more on the latter."

Mr Osborne said high speed rail services would be extended to Manchester but that transport secretary Patrick McGloughlin would make a further announcement in the New Year.

There was also disappointment in the retail sector that the planned 2.6 per cent rise in business rates in April will go ahead.

Aviation bosses also hit out at Mr Osborne's failure to reduce – or axe – Air Passenger Duty. Manchester Airports Group says the levy, the highest of its kind in Europe, is discouraging airlines from launching new flight services to and from the region.

The £120m being made available to manufacturers will fund a scheme in England aimed at firms in the sector's supply chain, including aerospace, automotive, chemicals, construction, life sciences and energy.

Paul Stowers, senior manager at UKTI North West, welcomed the announcement of increased funding to help more SMEs into export markets.

He said: "We have ambitious plans to work with 1,000 more north west exporters in 2013, and this extra support will help us reach out to new companies.

"The additional UKTI funding announced includes more support for exhibiting overseas, additional International Trade Advisers, and a £1.5bn facility to provide loans to overseas buyers purchasing British goods."

Richard Baron, of the Institute of Directors, said: "The surprise reduction in corporation tax is a very welcome boost to the UK's competitiveness at a critical time.

"The private sector is working hard to deliver jobs and growth and the Chancellor has waded in to support that."

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